Care Club Vs CIT (Exemptions) (ITAT Pune)
Assessee, Care Club, Pune, filed an application in Form 10AB on 30.09.2024 seeking registration u/s 12AB. However, while filing, it inadvertently selected clause (ii) of Section 12A(1)(ac), which applies to renewal of regular registration, whereas Assessee had not yet been granted permanent registration.
On verification, CIT(E) issued a notice requiring various documents, including the copy of regular registration u/s 12AB. Since Assessee could not furnish such registration (as it was never granted earlier), CIT(E) rejected the application as non-maintainable, holding that an application filed under the wrong clause cannot be treated under the correct clause.
Before the Tribunal, Assessee contended that the wrong clause selection was inadvertent & unintentional. Assesssee requested that CIT(E) to condone the mistake & treat the application as one filed for permanent registration, relying on ITAT Pune rulings, including Kimaya Ashram Charitable Trust vs. CIT(E), Pune (ITA Nos. 2033 & 2034/PUN/2024, dated 23.12.2024), where such technical mistakes were condoned.
Revenue argued that CIT(E)’s rejection was correct since the pre-condition for clause (ii) was not met. However, the DR admitted that technical difficulties exist in treating applications under the wrong clause & suggested that assessee may file a fresh application under the correct clause.
